"Because of the unseasonably cold weather, Florida orange growers expect (1) fewer bushels of oranges to be harvested, (2) a high market price for oranges, and (3) larger total revenues from this year's crop".  This statement would most likely be correct if the

a. demand for Fl oranges was elastic

b. demand for Fl oranges was unitary elastic

c. demand for Fl orages was inelastic

d. income elasticity of Fl oranges was negative 

Which of the following will become smaller and smaller as the firm expands out?

a. atc

b. afc

c. mc

d. tfc 

If a firm increases its output and finds that its ATC decreases as a result, this implies that

a. mc exceeds ATC

b. the cost of producing an additional unit of output is more than the ATC

c. AFC is increasing

d. ATC exceeds MC 

Which of the following would cause a firm's cost curve to shift upward?

a. a reduction in resource price

b. a decrease in taxes

c. an improvement in technology

d. an increase in gov't regulations 

The law of diminishing returns indicates why